ILFC Fails to Sway Bond Market as Standalone: Corporate Finance

International Lease Finance Corp.’s debt reductions and maturity extensions are failing to convince investors the plane-leasing unit of American International Group Inc. should stand on its own in a worsening global economy.

Credit-default swaps on ILFC have more than doubled since May 19, even as Standard & Poor’s raised its senior unsecured debt rating to BBB-, the lowest investment grade. The company’s bonds have lost 5.02 percent this month, compared with 3.53 percent for all high-yield debt, according to Bank of America Merrill Lynch index data.